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Royal Malaysian Customs Department Provides Draft Guide on Increase in Service Tax Rate and Expanded Scope

12 February 2024

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Proposed Changes

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Malaysia

On 7 February 2024, the Royal Malaysian Customs Department published a draft guide on the upcoming increase in the service tax rate and the expanded scope, which is to be implemented on 1 March 2024. The guide is under review by the Ministry of Finance until the related legislation is published in the Official Gazette. It is also noted that a separate guide will be issued in regard to digital services provided by foreign registered persons. Key points of the draft guide include: The service tax rate will be increased from 6% to 8% from 1 March 2024 on all...